Summary:
The dollar strengthened before central bank meetings, according to economic data. Safe havens weakened as investors chased higher yields.
EBC Forex Snapshot, 5 Jun 2024
The dollar firmed on Wednesday with several central banks meetings and key economic data around the corner. Major safe haven currencies lost ground as investors sought high yields.
Japanese real wages fell for a 25th straight month in April, data on Wednesday showed, as inflation outpaced nominal pay rises. The yen has been the worst-performing G10 currency this year.
Swiss inflation rose to 1.4% in April, outpacing the 1.1% rate forecast by a Reuters poll of economists. That was the 11th month in a row the rate remained within the central bank's target range.
| Citi (as of 27 May) | HSBC (as of 5 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0793 | 1.0895 | 1.0804 | 1.0933 |
| GBP/USD | 1.2300 | 1.2803 | 1.2663 | 1.2840 |
| USD/CHF | 0.8988 | 0.9244 | 0.8800 | 0.9077 |
| AUD/USD | 0.6563 | 0.6729 | 0.6583 | 0.6709 |
| USD/CAD | 1.3478 | 1.3846 | 1.3596 | 1.3752 |
| USD/JPY | 152.12 | 157.68 | 153.04 | 157.23 |
The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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The US hovered near a two-month high on Thursday as markets grew confident in the Fed's patient monetary policy ahead of a key inflation report.
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